Business & StartupQuick Pricing

Selling Price Calculator

Quickly compute final consumer or wholesale selling prices, dollar profit, and cross-calculate between target profit margin and markup percentages.

Unit Cost & Markup / Margin Method

Selling Price Mathematical Formulas

Target Margin: Price = Cost / (1 - Margin % / 100); Target Markup: Price = Cost × (1 + Markup % / 100)
  • Margin Pricing: Ensures that after paying costs, the specified percentage of cash collected remains as gross profit.
  • Markup Pricing: Adds a fixed percentage directly onto the base cost.

Step-by-Step Worked Example

Scenario: Pricing an item that costs $80.00 with a desired 20% profit margin

Calculation Steps:

  1. Calculated Selling Price = $80.00 / (1 - 0.20) = $100.00
  2. Profit Per Unit = $100.00 - $80.00 = $20.00
  3. Profit Margin = ($20.00 / $100.00) × 100 = 20.0%
  4. Equivalent Markup = ($20.00 / $80.00) × 100 = 25.0%
Result: The required selling price is $100.00, yielding $20.00 profit per unit (20.0% margin, 25.0% markup).

How to Use This Calculator

  1. 1Enter the total cost of the product or service unit.
  2. 2Choose whether your target percentage represents profit margin or cost markup.
  3. 3Enter your desired percentage value.

Assumptions & Limitations

  • Unit cost includes all landed costs (freight, packaging, and merchant fees).
  • Target margin must be strictly under 100%.

Frequently Asked Questions

Why does adding 20% to cost not give a 20% profit margin?

Adding 20% to an $80 cost gives $96 ($16 profit). But $16 profit divided by $96 selling price is only a 16.7% margin. To get a true 20% margin, divide $80 by 0.80 = $100.

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Calculate dollar markups, final retail selling prices, and resulting gross profit margins from unit wholesale costs and target markup percentages.